The role of vaccination in a model of asset pricing during a pandemic.
other · Level V
Where this comes from
- Record sourced from PubMed, PMID 35446918.
- Also identified by DOI 10.1371/journal.pone.0266511 and PMC identifier 9022870.
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Abstract
This paper examines the effect of pandemic vaccination on asset prices in a simple asset pricing model à la Lucas 1978. In this model, asset prices depend on susceptible individuals' saving motives to insure against a reduction in labour income due to getting they get the virus. Hence distributing vaccine reduces precautionary saving motives and asset prices. This implies that reducing the income gap between susceptible and infected individuals, such as by cash handouts, eases the negative effect of vaccine supply on asset prices.
Medical subject headings
- Pandemics
- Vaccination